Limitation of exercise of all due-on-sale [options]

A lender may not exercise its option pursuant to a due-on-sale clause upon: A. the creation of a lien or other encumbrance subordinate to the lender's security instrument which does not relate to a transfer of rights of occupancy in the property; B. the creation of a purchase money security interest for household appliances; C. a transfer by devise, descent or operation of law on the death of a joint tenant or tenant by the entirety; D. the granting of a leasehold interest of three years or less not containing an option to purchase; E. a transfer to a relative resulting from the death of a borrower; F. a transfer where the spouse or children of the borrower become an owner of the property; G. a transfer resulting from a decree of a dissolution of marriage, legal separation agreement or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property; or H. a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property. History: Laws 1983, ch. 314, § 6.